Accounting and classification of grants-in-aid: recognition, revenue treatment, valuation and mandatory disclosure requirements for governments. IGAS 2 requires cash grants to be recognized by the grantor on disbursement and by the grantee on receipt; in-kind grants recognized at receipt where value exists and valued using grantor cost or market/replacement value. Grants disbursed are classified as revenue expenditure in the grantor's accounts and grants received as revenue receipts in the grantee's accounts, including pass-through grants. Creation of capital assets by grantees does not convert grantor expenditure to capital except where expressly authorised; such exceptions and details of funds released and funds allocated for capital formation must be disclosed in the prescribed format.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Accounting and classification of grants-in-aid: recognition, revenue treatment, valuation and mandatory disclosure requirements for governments.
IGAS 2 requires cash grants to be recognized by the grantor on disbursement and by the grantee on receipt; in-kind grants recognized at receipt where value exists and valued using grantor cost or market/replacement value. Grants disbursed are classified as revenue expenditure in the grantor's accounts and grants received as revenue receipts in the grantee's accounts, including pass-through grants. Creation of capital assets by grantees does not convert grantor expenditure to capital except where expressly authorised; such exceptions and details of funds released and funds allocated for capital formation must be disclosed in the prescribed format.
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